Ground-Level Office
For Sale
Contact for pricing
121 Malabu Drive, Lexington, KY 40503
Configured with private offices, a waiting area, and a restroom for flexible commercial use.
Property Size941 SF
Price / SF$180.66
Days on Market12
Property Features for 121 Malabu Drive
General Information
Standard status
Active
Size
941 SF
Class
C
Property subtype
Retail
Zoning
P-1
Occupancy
100%
Additional Details
Floor
Ground Floor
Office Units
1
Building Details
Year Built
1969
Buildings
1
Stories
1
Units
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
SVN | Stone Commercial Real Estate
(859) 806-1591
Listed By:
Travis Rose · License #KY
Source:
Crexi
Added: Jul 31
Changed: Aug 9
Last Checked: Aug 11 at 6:26AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of SVN | Stone Commercial Real Estate
Investment Insights
Based on property information with market context.
This 941-square-foot office condo is a ground-level commercial unit with an interior layout that includes a small waiting area, multiple private offices, and a restroom. The space is currently arranged as a hair salon and has been updated, while the existing configuration can be adapted for other commercial uses.
The unit is located at 121 Malabu Drive, Unit 7, in Lexington, just off Nicholasville Road. It offers on-site parking and convenient access within the Nicholasville Road retail corridor. The property carries P-1 zoning, and the current hair salon tenancy is structured on a month-to-month basis.
The unit is located at 121 Malabu Drive, Unit 7, in Lexington, just off Nicholasville Road. It offers on-site parking and convenient access within the Nicholasville Road retail corridor. The property carries P-1 zoning, and the current hair salon tenancy is structured on a month-to-month basis.
Key Highlights
- 941 SF ground‑level office condo
- Currently configured as a hair salon
- Small waiting area, multiple private offices, and restroom
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$12,480
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.34%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$249,600
$249.6K
Cap Rate 7%
$178,286
$178.3K
Cap Rate 9%
$138,667
$138.7K
Market Conditions
NOI Build-Up for 941 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$19.2K $20.40/SF
− Vacancy
−$2.6K −$2.72/SF
EGI
$16.6K $17.68/SF
− OpEx
−$4.2K −$4.42/SF
NOI
$12.5K $13.26/SF
Area
ZIP 40503
Vacancy
13.32%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$249,600
Cap Rate 7%
$178,286
Cap Rate 9%
$138,667
Alternative Uses
Best Use
Office B
$178.3K
$156.0K – $208.0K
NOI $12,480 @ 7.0% cap · market cap 7.34%
Second Best
Retail
$159.9K
$139.9K – $186.6K
NOI $11,193 @ 7.0% cap · market cap 6.58%
Theoretical Best
Office A
$196.1K
$171.6K – $228.7K
NOI $13,724 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,655
Businesses Nearby
Explore this area
Business Placement
Demographics for 40503, KY
28,073
Population
13,437
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
8.8 sq mi
ZIP Area
3,190
Density / Sq Mi
$74,161
Median Household Income
$43,061
Median Earnings
$1,110
Median Rent
$280,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Configured with private offices, a waiting area, and a restroom for flexible commercial use.
Where is this office units located?
The property is located at 121 Malabu Drive Lexington, KY.
What is the asking price?
The asking price for this property is $170,000.
What are key features of this property?
This property features: 941 SF ground‑level office condo; Currently configured as a hair salon; Small waiting area, multiple private offices, and restroom
